Earlier this year, a federal court blocked the U.S. Department of Education (ED) from using parts of the SAVE Plan and other income-driven repayment (IDR) plans. Because of this, ED can’t use the SAVE formula to calculate payments or forgive loans after the required payment years for SAVE, Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) Plans.
The Biden-Harris Administration is fighting this in court to keep the SAVE Plan going and help borrowers with their student loans. If you’re on the SAVE Plan, here’s what’s next.
What does SAVE Forbearance mean for you?
You’re currently in general forbearance unless you’re in a different status (like deferment). Servicers can’t calculate payments due to the court’s decision. Here’s what this means:
No monthly payments required.
No interest is accruing.
Time in forbearance doesn’t count toward Public Service Loan Forgiveness (PSLF) or IDR forgiveness.
If you apply for a different IDR plan (other than SAVE) and your loan servicer can’t process it within 10 days, you’ll be put in a temporary processing forbearance (up to 60 days):
No payments required.
Interest does accrue.
Time in this forbearance counts toward PSLF* and IDR.
*You need to submit a PSLF form with certified employment for this to count.
More details about PSLF and IDR credit:
Borrowers can earn forgiveness after a set number of payments. You can enroll in other IDR plans like PAYE, IBR, or ICR to earn PSLF credit. Payments on these plans count toward PSLF and IDR forgiveness. However, forgiveness for PAYE, SAVE, and ICR is currently blocked due to the court’s decision. IBR Plan forgiveness is still available.
To learn more about PSLF Buyback or other options, visit the StudentAid.gov site.
I got this email too. I’ve been on SAVE since they switched me automatically from REPAYE. Haven’t recertified since 2019. Should I recertify now, or wait until 2025 when my recertification is due?
Hollis said:
I got this email too. I’ve been on SAVE since they switched me automatically from REPAYE. Haven’t recertified since 2019. Should I recertify now, or wait until 2025 when my recertification is due?
Honestly, I’d wait. Talking to my servicer (Nelnet) didn’t really clear anything up. They seem confused too.
Hollis said:
I got this email too. I’ve been on SAVE since they switched me automatically from REPAYE. Haven’t recertified since 2019. Should I recertify now, or wait until 2025 when my recertification is due?
I feel like the email made everything even more unclear. What happens if we don’t recertify?
Hollis said: @Jesse
Good question. The email said something about payments starting in December, but my servicer’s site says July. None of this lines up.
Same. I’m just going to stay put and see how this court case plays out.
Hollis said:
I got this email too. I’ve been on SAVE since they switched me automatically from REPAYE. Haven’t recertified since 2019. Should I recertify now, or wait until 2025 when my recertification is due?
I submitted recertification last October, and they never processed it. Now I’m stuck in general forbearance. This whole thing is a mess.
I submitted my IDR application in November, and they still haven’t processed it. Sounds like they’ll just stick me in forbearance, but will they actually count those months toward PSLF?
Harper said:
I submitted my IDR application in November, and they still haven’t processed it. Sounds like they’ll just stick me in forbearance, but will they actually count those months toward PSLF?
Probably not. They barely keep up with what’s happening. This whole process feels like a setup for failure.
The communication is awful. I tried recertifying, but they didn’t process it. Now I’m in forbearance and have no idea what’s coming next. This whole system is exhausting.